Analyze CSR initiatives at Green Manufacturing

Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The companys operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities:

	Initial added cost	Variable cost		Variable savings
Recycle and reuse production material	$5,000	$0.10	per lb. of recycled material	$0.15	per lb. of recycled material
Add solar panels as a source of power	700,000	$1,000	per year	$33,000	per year
Replace assembly room light fixtures with natural light	120,000	$180	per month	$220	per month

The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect.

a. Determine if it is viable to recycle and use the products from the given information.

a. Yes, the company makes a net savings of $0.05 per lb. and the years of paying back the initial cost is 21.87 years. Therefore the project can be implemented.

b. The company makes a net savings of $0.05 per lb. and the years of paying back the initial cost is 21.87 years. Therefore the project cannot be implemented.

c. The initial cost of recycled materials is so high and therefore, the project should not be implemented.

d. None of the above.

Determine from the given information if it is viable to change the assembly room light fixtures.

a. The additional cost is very high and the net savings per year is low. Therefore, the project should not be implemented.

b. The savings in the long run will be significantly less so this project should not be implemented.

c. The useful life of the project and the recovery time of the initial investment do not match.

d. All the above.

b. From the given information, identify the performance metric for recycle and reuse production.

a. Pounds of material recycled.

b. Utility cost.

c. Initial investment and its recovery time.

d. None of the above.

From the given information, identify the performance metric for solar panel as the source of power.

a. Pounds of material recycled.

b. Utility cost.

c. Initial investment and its recovery time.

d. None of the above.

From the given information, identify the performance metric for replacing the assembly room light fixture with natural light.

a. Pounds of material recycled.

b. Utility cost.

c. Initial investment and its recovery time.

d. None of the above.